According to reports, ZA Bank, the largest virtual bank in Hong Kong by assets, will provide encrypted account services and facilitate the exchange of cryptocurrencies and fiat currencies.
The bank will act as a settlement bank, allowing token deposits on licensed exchanges to be withdrawn in Hong Kong dollars, Chinese yuan and U.S. dollars, and also provide account services to crypto companies, Bloomberg reported on April 12. The accounts of local cryptocurrency companies were carried out after a trial in a regulatory sandbox in which about 100 companies participated, but ZhongAn Bank CEO Ronald Yiwu noted that due to restrictions in China, those from mainland China Customers will not be able to obtain this service.
Iu added that currently the only two licensed cryptocurrency exchanges in Hong Kong, HashKey and OSL, offer currency exchange services. ZA Bank will offer the same service on other exchanges after obtaining a license, he said. As U.S. cryptocurrency firms struggle to find banking partners following the collapse of Silicon Valley Bank, Silvergate Bank and Signature Bank, Hong Kong-based ZA Bank appears to offer a potential solution for these firms, Iu added: "With the dozens of interested companies, large and small, from here and abroad, the overriding concern is finding a way to make things work."
ZA Bank’s announcement follows a concerted effort by Hong Kong regulators to turn the region into a cryptocurrency hub, which many in the cryptocurrency community believe will help it succeed compared to the hostility of U.S. regulators.
Chinese state-owned banks have also reportedly taken an interest in cryptocurrency companies relocating to the city and are offering banking services to or consulting with them.
